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      <>><<____________Volume 105:24-September-29-2005________________><<><><>><
           >><<<<_____Editor: Charlie Bartholomew, kryopak@qwest.net_____<>><<
                 >><<>>This issue distributes to 70 subscribers in 24 countries>><
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September-29-2005
Brazil Petrobras Gets License For Amazon Gas Pipeline
Egyptian LNG BG Group and partners first LNG from Train 2
Bolivia PV North gas pipe network is enlarged
Gasnor (Norway)  awards land-based LNG liquefaction contract
Iran's LNG export to India finalized
Mexico's Fox Discusses LNG Imports with Nigeria's President
Putin Confirms Siberian Oil Pipeline Will First Go to China
Qatar lets contracts for 6-8 LNG tankers
Russia delivers first LNG shipment to U.S.
September-29-2005
Argentina Deadline delay for refueling stations insurance
Bangladesh NGVs market 27,000 growing
Bolivia Diesel vehicle imports banned give way to NGVs
Dominican Republic introducing CNG
France Targets CNG expansion by 2010
Israel High oil prices motivate government NGV incentives
Italy Tax reduction motivates CNG conversions
Thailand CNG option to the “uncontrollable” oil price
US waives Jones Act in Katrina aftermath

Qatar lets contracts for 6-8 LNG tankers
 Sep 2, 2005 LOS ANGELES, CA, United States UPI
Qatar Gas Transport Co. will pay between $1.38 billion and $1.84 billion for liquid natural gas tankers to export the commodity.

QGTC plans on letting contract for six to eight LNG tankers at a cost of about $230 million each.

QGTC expects to name the winning bids and sign a construction deal in October, the Oil & Gas Journal reported Thursday.

The tankers, which will ship the LNG to Britain, will be operated by a joint venture of Qatar Petroleum, ExxonMobil Corp. and Total SA, a French energy company.
Russia delivers first LNG shipment to U.S.
Sep 2, 2005, 20:30 GMT
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COVE POINT, MD, United States (UPI) -- Russia delivered its first liquid natural gas shipment to a Maryland port Friday for Royal Dutch Shell PLC.

The tanker Castillo de Vellalba brought 60,000 tons of LNG, equivalent to 2.825 billion cubic feet of gas.

Gazprom Marketing & Trading Ltd, a marketing company of Russia`s state-owned Gazprom, and Shell Western LNG BV, delivered the commodity to an LNG import terminal at Cove Point, Md.

'The main U.S. LNG trading ground is located in Louisiana and we want to be as close to it as possible,' a Gazprom official said. 'But we are also considering other venues for our representative office, for example, in Houston, Texas.'
Iran's LNG export to India finalized
September 03, 2005 - ©2005 IranMania.com

Secretary of Supreme National Security Council (SNSC) Ali Larijani said "The issue of exporting Iran's Liquid Natural Gas (LNG) to India has been finalized." The SNSC secretary made the comment after arriving in Tehran's Mehrabad International Airport from India.

LONDON, September 3 (IranMania) - Secretary of Supreme National Security Council (SNSC) Ali Larijani said "The issue of exporting Iran's Liquid Natural Gas (LNG) to India has been finalized." The SNSC secretary made the comment after arriving in Tehran's Mehrabad International Airport from India.

LArijani said that the issue of exporting Iran's LNG to India through Pakistan and creating a transit route, as well as other political issues were the axis of his talks with Indian officials, according to IRNA.

Larijani added, Iran and India believe the unused capacities in their political, economics and cultural fields should be defined and take full advantage us in a bid to boost bilateral ties, upon creating sustainable stability in the region.
US waives Jones Act in Katrina aftermath
By OGJ editors HOUSTON, Sept. 2

The US Department of Homeland Security has waived the Jones Act, allowing foreign-flagged vessels to transport cargos between US ports. Homeland Security Sec. Michael Chertoff signed the waiver on Sept. 2. No details were provided on how long the waiver would be effective. The waiver will add flexibility to an oil transportation system hobbled by storm-related impairment to the operation of several key pipelines. The Jones Act also is known as the Merchant Marine Act of 1920. 
BG Group and partners first LNG from Egyptian LNG Train 2

BG Group and its partners, PETRONAS, the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) today announced the start-up of Egyptian LNG Train 2, some nine months ahead of schedule. Early cargoes from the new facility will be lifted later this year by BG Group and Asean LNG Trading Company Limited (ALTCO), a subsidiary of PETRONAS.

Speaking today, Stuart Fysh, BG Group's Managing Director for the Mediterranean Basin and Africa, said: "We are delighted to announce the start-up of ELNG Train 2, some nine months ahead of schedule. This, along with the early delivery of Train 1 by more than three months, sets a new benchmark for the delivery of a green-field LNG project.

"It also represents a significant milestone in the development of the Egyptian natural gas industry and an outstanding achievement for BG Group and the Egyptian Ministry of Petroleum. The early delivery of this project will create substantial additional value for Egypt, BG and our partners," Fysh said.

The entire 3.6 million tonne per annum (mtpa) output of the second train has been sold to BG Gas Marketing under a 20 year sales and purchase agreement.

Notes to Editors:  BG Group is a global natural gas business. Active on five continents in over 20 countries, it operates four business segments - Exploration & Production, Liquefied Natural Gas, Transmission & Distribution and Power Generation.

BG is an important participant in the development of the gas business in Egypt, with both upstream and downstream investments. It has interests in two gas producing areas offshore the Nile Delta - the Rosetta fields and the West Delta Deep Marine (WDDM) Concession. The first WDDM fields - Scarab and Saffron - started production in March 2003. The Simian Sienna field commenced production on 15 April 2005 and the Sapphire field in WDDM is currently being commissioned to supply the $1.9 billion Egyptian LNG project.

In July 2005, BG Egypt signed two new concession agreements for the El Manzala and El Burg Offshore Areas. BG holds a 100 per cent interest in the El Manzala Offshore Concession Area and a 70 per cent interest in the El Burg Concession Area with PETRONAS holding the remaining 30 per cent. BG is the operator of both concessions.

The first cargo from Egyptian LNG Train 1 was lifted on 29 May 2005 by ALTCO, a subsidiary of PETRONAS. Partners in Egyptian LNG Train 1 include; BG Group (35.5%), PETRONAS (35.5%), the Egyptian Natural Gas Holding Company (12.0%), the Egyptian General Petroleum Corporation (12.0%) and Gaz de France (5.0%).
NGV Worldwide News
02-09-2005

Bangladesh NGVs market 27,000 growing
There are more than 27,000 vehicles that have been converted to CNG and there are 100 CNG refueling stations in this country
Traffic has greatly increased during the last years. Bangladesh cities and roads are crowded by thousand of private vehicles, taxis, rickshaws, and buses causing traffic jams. Workshops are also affected by the NGV growth, with daily increasing amount of conversions. Furthermore, during the last months refueling stations are being set up in the cities of Dhaka , Chittagong , Narayanganj, Gazipur, Comilla, and Sylhet.

Dominican Republic introducing CNG
The company Tropigas Dominicana announced that alliances will be made with international companies for CNG transmission and commercialization as a way to face the constant increase of oil barrel price as well as its by-products. Hence facilities will be enlarged and modernized, truck fleets will be renewed, and a quality control plan will be set up for its products.
This company’s executives talked about details during the celebration of Tropigas’ 50 th anniversary, event which was attended by major political authorities, lawmakers, businessmen, and industrial people.

Argentina Deadline delay for contingency insurance for refueling stations
The deadline for this service was delayed for another 30 banking days as from August 25. It is a regulation of the National Gas Regulating Body (Enargas), number 2629/02, which enforced a contingency insurance for CNG refueling stations. The deadline was delayed because some insurance companies did not have a policy within their services and they had to adapt one to offer the new customers.
The resolution passed on 2002 established a minimum insured amount of 200 thousand pesos. However, a new regulation, 3224/05, decreased this amount since it was considered “appropriate to establish a contingency insurance as only means of guaranteeing the fulfillment of obligations by CNG refueling stations, establishing a reduction of the amount to 50 thousand pesos.”
This resolution establishes, as well, that operators of stations with leasing contracts who have a guarantee in favor of the Sub-secretary of Fuels –dependency of the Secretary of Energy- should also endorse the policy on behalf of Enargas “to avoid unnecessary economic expenditures.”

Bolivia PV North gas pipe network is enlarged
Works to enlarge the transport capacity of the so-called north gas pipe network were officially inaugurated. This will soon allow the injection of 1.8 million m³ of natural gas, mainly destined for the north and center areas of the country. Works will end in two months approximately and they will total an amount of 234 kilometers loops in eight sections. Furthermore, three new compressor plants are foreseen and other facilities will be adapted to allow meeting the sharp increase of fluid demand that has taken place during these last years. The inauguration was presided by the Minister of Federal Planning, Julio de Vido. The national officer mentioned they are negotiating trades with the government of Bolivia . “We will import gas and export technology. We are preparing a draft for the following Bolivian government to take it into account,” he said.
Gas transportation will amount to 200,000 m³/d in Salta , 700,000 in Tucumán, and 900,000 in Córdoba, totaling 1.8 million m³/d to the current capacity of the pipe network.

Bolivia Diesel vehicle imports banned give way to NGVs
According to President Carlos Mesa’s decree, diesel light vehicle imports will be restricted. The target of this initiative is to give way to thousand NGVs. Imports are banned of new as well as used (car, van, minibus, and truck) vehicles, with a cylinder capacity less or equal to 4,000 cm³.
Vehicles which will not be affected by this decree are those which by the enforcement time are placed in free zones or customs areas to be nationalized or imported, and they shall be granted a two months term to be nationalized.

Italy Tax reduction motivates CNG conversions
Altero Matteoli, Minister of Environment said that Minister of Industry, Claudio Scajola, is analyzing a project to try to bring fuel prices to a halt. In a short time, the government will promote tax reductions for the amount of 20,000 euros for gasoline users to switch to less polluting fuels as methane. With this purpose, he assured nuclear energy is not the solution to resources shortage in Italy , mainly because it takes a long time to build and develop power plants, while the energy deficit of the country demands “fast solutions.” That is how natural gas becomes the best alternative.

France Targets CNG expansion by 2010
According to the French Association for Natural Gas Vehicles (AFGNV), there will be a sharp increase in vehicles running on this fuel. The number of buses will double (to 3,200), trucks will triple (to 900) and private vehicles will increase to 100,000. This association, together with the French government, and major OEMs will join their efforts to achieve this forecast in duly time.
Hence a target of 300 stations dispensing compressed natural gas (CNG) was set. The company Gaz de France is also planning a major push into the home refueling market.
Government participation in the agreement is essential to increase energy diversification, reduce greenhouse gases, and improve air quality. Thus, tax incentives for vehicle and fuel purchases are foreseen. Other signatories to the agreement include OEMs Peugeot Citroën and Renault.

Thailand CNG option to the “uncontrollable” oil price
Bangkok ’s transport authorities are planning to convert 1,000 buses to CNG before the end of the year, in order to avoid diesel purchase. Prime Minister, Thaksin Shinawatra, showed concern for the high oil prices, which he referred to as “uncontrollable”. As a consequence, he declared to be in favor of alternatives like natural gas. “ He said the country is in urgent need of NGV cylinders locally manufactured and setting up of more NGV stations,” highlighted the main government authority of Thailand .

Israel High oil prices motivate government NGV incentives
The Minister of Infrastructure recently highlighted that a sharp increase in the number of cars fuelled by compressed natural gas is expected in the coming years. “We expect ten thousand cars will be using compressed natural gas within a matter of two to three years,” predicted Deputy Vladimir Nemirovsky. Currently Israel has only a few hundred cars running on natural gas. After a new system is finally determined to obtain tax exemptions for imported natural-gas-powered cars, the demand is expected to increase noticeably. At present only cars that are converted locally in Israel receive an exemption.
India's LNG plants
http://www.thehindubusinessline.com/2005/07/04/
By 2008, there could be two small liquefied natural gas manufacturing plants, to be run by Australia's Liquified Natural Gas Ltd, to meet the requirement of India and South-East Asia, according to a report in the Lloyd's List.
Mexico's Fox Discusses LNG Imports with Nigeria's President
Business News Americas (BNamericas.com) 9/7/2005 URL: http://www.rigzone.com/news/article.asp?a_id=25089

Mexico plans to import liquefied natural gas (LNG) from Nigeria, local press quoted President Olusegun Obasanjo as saying in a press conference during his state visit to Mexico City. Obasanjo held private talks with Mexico's President Vicente Fox and the senate president Enrique Jackson on Monday.
Both countries will start negotiations to increase bilateral cooperation in the energy sector and plan to create a special commission to start work in four months, papers quoted Obasanjo as saying.

Mexico and Nigeria will work together to reduce the impact of high oil prices on refined products, but Mexican energy secretary sources did not provide details about any existing agreements between the countries.
Nigeria is the largest oil producer in Africa and the world's seventh largest.
Putin Confirms That Siberian Oil Pipeline Will First Go to China
AFX News Limited 9/7/2005 URL: http://www.rigzone.com/news/article.asp?a_id=25086

Russian president Vladimir Putin has confirmed that a multibillion-dollar oil pipeline to be built across Siberia will first go to China and only later to the Pacific coast, the Wall Street Journal reported in its online edition.

Japan and China have been vying over the route of the pipeline, which will eventually pump as many as one million barrels of Siberian oil a day to East Asia.

So far, Russia has refused to commit on which customer would get deliveries when.

But in a meeting with Western analysts and journalists in the Kremlin late Monday, Putin said shipments initially will go to China's oil center in Daqing, the Journal reported, citing one of the participants.

"The Daqing pipeline will be built first," Putin was reported as telling the group. "But we will also build to Nakhodka," he said, referring to Russia's port on the Pacific coast that would enable shipments to Japan.

Putin said that by sending oil to Daqing, Russia will be able to diversify export routes and avoid becoming dependent on a single customer for its oil. "We want to sell to the whole Asia-Pacific region," he said.

Construction of the pipeline is to begin late this year, with the first stage of the line carrying 30 mln metric tons of crude annually from Taishet in Siberia to Skovorodino near the Chinese border.

From there, a pipeline is expected to take two-thirds of the oil south to Daqing, while the remaining 10 mln metric tons would be shipped by rail to a new port to be built on the Pacific coast near Nakhodka. The project is expected to be completed around 2008.

Putin also has pledged to expand the line to 50 mln metric tons a year, or roughly 1.2 mln barrels a day, and to extend the pipe all the way to the Pacific coast at some time in the future, the report said.

Putin also reiterated that Russia will continue to expand oil production amid global worries about petroleum supplies. He played down the slowdown in output growth over the past year, noting that, despite problems at embattled giant OAO Yukos, Russian production has been rising.

"Even without Yukos, oil production has increased and will continue to increase," Putin was quoted as saying.
Gasnor awards land-based LNG liquefaction contract
09-09-2005

Hamworthy plc (HMY.L), a world leader in the design and manufacture of innovative marine and offshore fluid handling systems, has won an order for an unmanned land-based liquid natural gas (LNG) processing plant at Kollsnes in the western coastal area of Norway.  The contract, worth in excess of £25 million, has been awarded by Gasnor the leading Norwegian natural gas company.

This order demonstrates the increasing popularity of LNG as an energy source and indicates a growing demand for land-based processing facilities, particularly in localities where gas is available but where there is no existing gas pipeline distribution system.   The plant at Kollsnes will use the same technology as employed on LNG carriers for which Hamworthy has already won orders, but will be approximately twice the capacity producing up to 84,000 tonnes of LNG per year.   However the plant, which will be delivered in February 2007, will be small-scale compared to other land-based distribution plants that liquefy natural gas directly from gas fields.

The plant will receive natural gas from the neighbouring Statoil North Sea gas receiving terminal.  Once the gas has been liquefied, it will be distributed as LNG by road and via small coastal LNG carriers for industrial customers based in Norway.  In addition, the liquefied LNG will provide fuel for five new Norwegian gas engine ferries.
Hamworthy supplied its first fully functioning land-based liquefaction system in 2003 for Gasnor at Snurrevarden, Norway.  This unmanned plant was Northern Europe´s first free-standing mini-LNG production facility and is able to process up to 21,000 tonnes of LNG per year.   Erik Brinchmann, Chief Executive of Gasnor AS said: "Gasnor´s experience with Hamworthy during the Snurrevarden project was very positive, and was a contributing factor to this contract being awarded.

he contract was also won on Hamworthy´s technical concept and competive price. This new LNG plant confirms Gasnor´s position as the leading Norwegian natural gas company."   Kelvyn Derrick, Chief Executive of Hamworthy plc said: "The first land-based LNG liquefaction system at Snurrevarden allowed us to demonstrate our new technology in a live environment.  Its outstanding operational performance was instrumental in securing this latest order from Gasnor, as well as being crucial to Hamworthy becoming the world leader in small scale LNG reliquefaction systems on LNG carriers.   "There are emerging opportunities for land-based applications as use of worldwide LNG continues to grow and we are delighted by the confidence Gasnor have shown by awarding this latest contract which positions us well for the future."
For further information: Hamworthy plc Graham Lockyer, Tel: +44 (0) 1202 662 604, www.hamworthy.com   Media enquiries: Abchurch Henry Harrison-Topham / Ariane Comstive, Tel: +44 (0) 20 7398 7700 henry.ht@abchurch-group.com www.abchurch-group.com
Brazil Petrobras Gets License For Amazon Gas Pipeline
by  Bernd Radowitz RIO DE JANEIRO, Sep 08, 2005 (Dow Jones Commodities News Select via Comtex)

Brazil's Environmental Protection Agency Ibama said Thursday it granted a unit of state-run oil company Petroleo Brasileiro SA (PBR), or Petrobras, a license to start construction on a controversial gas pipeline cutting through pristine Amazon forest.

Petrobras and environmentalists have quarreled since 2001 over the planned 550-kilometer pipeline from the oil- and gas-producing region of Urucu in the Amazon state of Amazonas southwest to Rondonia state capital Porto Velho.

Petrobras through the pipeline plans to supply gas-fired power plants in Porto Velho with gas from Urucu. The company currently re-injects most of the 9.3 million cubic meters of natural gas it produces in Urucu.

Ibama gave the license to the consortium TNG Participacoes Ltda. that is controlled by Petrobras and has a minority participation of El Paso Corp. (EP).

The license runs until September 2009, Ibama said in a statement. One of the prerequisites for the license is for TNG Participacoes to present a construction project that guarantees that there will be no interference in national forests. Also, the company will have to present a program to avoid diseases to spread from construction workers to local Indian communities, and a program of environmental education for workers.

Environmental NGOs have been criticizing the pipeline project for years, arguing it would open a corridor into untouched rain forest that is likely to attract thousands of illegal settlers and lumber loggers and spoil the life of Indian tribes hitherto untouched by contact from the outside world.

Brushing aside the criticism, Petrobras President Sergio Gabrielli on Aug. 23 said Urucu "is an example of the balance between oil exploration and the environment." The firm also produces some 60,000 barrels of high-quality light oil there.

Roberto Smeraldo, head of the Brazilian affiliate of Friends of the Earth, however, said the transport of oil and gas through the Amazon has a serious impact on the environment.

"Oil and gas transport is dangerous in any situation. In a fragile ecosystem, this danger becomes even more intense," he said in August.

It was not immediately clear on Thursday afternoon whether environmental groups would try to overturn the Ibama decision in courts.